Count the cost before you buy a property
The purchase price of your new home is not all you will have to pay.
One of the most exciting life events is buying your own home, says Simon Lee, branch manager of Wakefields Lower South Coast.
The process can however be daunting but, he adds, by knowing and understanding all the costs involved, buyers and sellers can save themselves a lot of stress.
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“Your professional estate agent is equipped to help you identify and quantify all the costs involved in a property purchase.
“It’s this knowledge and advice that is an important aspect of the service they offer, so feel free ask all the questions you like.”
Simon advises that you be armed with this information before you buy in order to be able to budget properly.
Common costs for which you should allow include:
* Transfer duty – this is a tax based on the value of the property and is paid to the South African Revenue Service (only applicable if the property value is over R900 000). These fees cover the costs of transferring the property into the buyer’s name, with a fee paid to the conveyancer.
Bond registration – if you’ve raised a home loan, you’ll pay this fee, charged by the bank for the processing of the bond application, to the bank’s appointed registering attorneys.
There are other unofficial costs which should also be kept in mind, such as furniture removal, deposits for utility bills, any urgent repairs or maintenance, and even occupational rent if you move in before the property has been transferred into your name.
“Importantly, your estate agent has the experience and knowledge to guide you, source any information not readily available, and answer all the questions you might have.”
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